Friday, September 17

Unemployment registers its biggest drop in August with 82,583 fewer unemployed

The recovery in employment continues strongly and August ended with the best figure since there are records. The number of registered unemployed in the offices of the public employment services (formerly Inem) fell by 82,583 unemployed persons in August compared to July (-2.4%), its largest decrease in a month of August within the historical series, according to data published this Thursday by the Ministry of Labor and Social Economy.

On Wednesday, the Minister of Labor and Social Economy, Yolanda Díaz, already advanced that the employment data would be “very positive” and would yield “a surprising figure.” “In the month of August, in our country, the data are always very bad. Employment declines, unemployment rises and it does so with virulence in all the months of August,” he recalled, alluding to the end of the temporary contracts of the summer campaign.

For its part, Social Security lost an average of 118,004 contributors in August compared to July, which placed the total number of employed at 19,473,724 contributors, according to data from the Ministry of Inclusion, Social Security and Migration.

The Department headed by José Luis Escrivá emphasizes that between 2009 and 2019 the average loss of affiliates in August is 147,000 people, above the setback registered in August of this year.

However, as Escrivá advanced, the number of contributors to Social Security in seasonally adjusted terms (discounting seasonality and calendar effect) increased in August by 76,541 workers, which placed the total employed at 19,477,505 people, “practically the number of employed persons in February 2020, the month prior to the start of the health crisis “, according to the Ministry.

In the three months prior to August (May, June and July), registered unemployment was marking record declines, with declines of 129,000, 167,000 and 197,000 unemployed. The latter was the steepest drop so far in any month in the historical series. The decrease in unemployment in August (-82,583 people) has not reached these figures, but it represents a record fall for this month.

Work recalls that unemployment traditionally rises in August due to the decrease in activity in many sectors due to the holiday period. However, this year there has been no such rise and unemployment has thus chained six months of falls. In fact, points out the Ministry, in the last six months, unemployment has been reduced by more than 675,000 people.

With the decrease in August, the total volume of unemployed reached 3,333,915 unemployed at the end of the eighth month of the year. This data does not include workers who are on suspension of employment or reduced hours as a result of a temporary employment regulation file (ERTE), since the definition of registered unemployment does not count them as unemployed.

In seasonally adjusted terms, registered unemployment fell by 149,203 people in August, also registering its biggest drop in the series in one month of August, despite the fifth wave and in parallel to the good progress of the vaccination campaign, with the recent milestone achieved having already exceeded more than 70% of the Spanish population with the complete schedule of the coronavirus vaccine

In the last year, unemployment accumulated a decrease of 468,899 unemployed, which is 12.3% less.

Almost all sectors

Unemployment decreased in August in all sectors, except in construction, where it rose by 1,139 people (+ 0.4%). The biggest decline was in the service sector, with 46,224 fewer unemployed (-1.9%), followed by the group without previous employment (-22,873 unemployed); agriculture (-13,499 unemployed), and industry, which subtracted 1,126 unemployed and is now at prendemic levels.

In August, 1,407,563 contracts were registered, 25.8% more than in the same month of 2020, of which 118,985 were permanent, 8.4% of all contracts and 23.6% more than in August 2020.

The Ministry has also reported that the expenditure on benefits derived from workers in ERTE reached in July (latest data available) the figure of 343 million euros, compared to 427 million in June.

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